IDACORP Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Diluted Earnings Per Share (EPS): Q2 2026 EPS was $1.79, up from $1.76 in Q2 2025. Year-to-date EPS for 2026 reached $3.00, compared to $2.87 in 2025.

Tax Credit Amortization: No additional tax credit amortization was recorded in Q2 2026, contrasting with $172 million in Q2 2025. For the first half of 2026, only $6.3 million was recorded versus $36.5 million in the prior year.

Full-Year EPS Guidance: The guidance was raised to $6.30 - $6.45, reflecting strong operational performance and reduced expectations for tax credit amortization.

2Strategic Updates and Business Highlights

Customer Growth: Customer count increased by 2.3% year-over-year, with industrial revenues up 17.0% due to large contracts, particularly from Micron and Meta.

Operational Projects: IDACORP successfully brought 250 megawatts of battery storage online and completed a natural gas conversion project. Three major transmission projects are progressing, with expected completion dates ranging from late 2027 to 2030.

Sustainable Growth Approach: New agreements with large customers will include provisions to ensure costs do not shift to existing customers, maintaining affordability.

3Forward Guidance and Outlook

O&M Expense Guidance: Expected to be between $525 million and $535 million for the full year.

CapEx Guidance: Anticipated spending between $1.3 billion and $1.5 billion in 2026, trending towards the higher end.

Hydropower Generation: Forecasted to be between 5.5 million and 6.5 million megawatt-hours, slightly reduced due to dry conditions observed in May and June.

4Challenges and Points of Concern

Weather Dependency: The company assumes normal weather conditions for the remainder of 2026, which could impact energy demand and generation.

Operational Costs: O&M expenses increased by nearly $12 million in Q2, primarily due to deferred costs and wildfire mitigation efforts.

Regulatory Risks: The ongoing sale of the Oregon distribution system is pending regulatory approvals, which could affect future operations.

5Notable Q&A Insights

Battery Storage and Future Resources: Management indicated that while battery storage is a key component of their strategy, it is not a complete solution for all energy needs. Future resources will also include gas projects.

Rate Case Considerations: Discussions around a potential rate case filing in June 2027 were highlighted, with the decision dependent on large load revenues and the conversion of significant capital projects to plant service.

ADITC Mechanism: The reduced use of the ADITC mechanism could provide flexibility in timing for future rate cases, depending on the balance of depreciation and interest expenses.

Micron Fab 2 Negotiations: Active discussions are ongoing, but details remain confidential. The project is not included in current capital expenditure forecasts. Overall, IDACORP demonstrated strong financial performance and strategic growth initiatives while navigating potential challenges related to weather, operational costs, and regulatory approvals.